PSY603 Study Guide - Summer 2018, Comprehensive Midterm Notes - Citizens Band Radio, Canada, Memory
PSY603
MIDTERM EXAM
STUDY GUIDE
Fall 2018
1
PSY 603 Consumer Behavior
LECTURE 1
Consumer Behavior:
It is about value. Consumer buy thing and the chain reaction begins. Consumption does not end
at the purchase of an item. It depends on the use and worth of a product.
Why is Behavior important to consumers?
• Marketer who understands consumers, designs products with more value
• Policy makers who understand consumers, make effective public policy decisions
• Consumers who understand behavior, make better decisions on how they allocate their
resources
Marketing Ethics + Consumer Behavior
• Relations between marketer (products/companies) and consumers is not always positive
• Misbehavior becomes complicated, not a general agreement on what is unethical
• Ethical. Standards or moral code of conduct to which a person or a group adheres
• Manipulative marketing practices, false advertising, corporate scandals, and change the
value associated with the exchange of good. For example, money for item or service
• Rules of behavior
• Consequences
• Vote for you wallets
Consumer Behavior as field of study:
Looks at consumers as they go about the consumption process. The science of studying how
consumers seek value in effort to address their needs. It is a very new field, closely and
interrelated with other fields of study. For example, economics, marketing, psychology,
anthropology and sociology.
Economics: study of production and consumption, macro
Psychology: study of human reactions to environments behavior and mental processes
• Social psychology: group behavior. Focuses on the thoughts, feelings, behaviors that
people have as they interact with other people. Consumer behavior takes place in group
settings, social psychology and consumer behavior
• Cognitive psychology: study of intricacies of mental reactions involved in information
processing. Consumer evaluates a product or sees advertisement and then information is
processed
Marketing: value producing seller activities that facilitates exchange between buyers and sellers.
It grew out of economics and psychology. Consumer behavior and marketing tied closely together.
Marketing actions target or affect the consumers. Consumer’s actions affect marketers
Consumer orientation: the business prioritizes the customer
Relationship marketing: belief that performance is enhances through repeat business
Touchpoints: direct contact between firm and customer
Consumer Behavior role in business/ society:
• Provides an input to business or marketing strategy
• Provides a force that shapes society
• Provides an input to making responsible decision as a consumer
find more resources at oneclass.com
find more resources at oneclass.com
2
PSY 603 Consumer Behavior
Resource advantage theory:
• Success for a business is a long term survival
• Resource advantage theory explains why companies succeed or fail. Companies succeed
by acquiring more resource from consumers and in return using those resources to gain
advantages in physical and intellectual capital
What do people buy?
• Consumer buys something, gives up resources
• A product is a potentially valuable bundle of benefits
• Theodore Levitt- emphasized the importance of the value one receives from the product,
rather than the product itself
• Companies to understand why people buy their product. Example VHC or CD player are
going out of sale, no more needed. Technologies do not provide value directly. Activities
and benefits associated with the technologies do
Consumer and consumption- The basic consumption process:
• Consumer behavior- set of value seeking activities that take place as people go about
addressing needs. Realize something is needed, chain reaction begins and the finds its
way to fill the need. Psychological process of thoughts, feelings, behavior turns to value.
• Consumption- process by which goods, service or ideas are used and transformed into
value. Actions that involves acquiring and using an item that creates value for the
consumer. The basic consumption process provides the basis for understanding why
people buy what they do.
1. Need
2. Want
3. Exchange
4. Cost and benefits
5. Reaction
6. Value
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Consumer buy thing and the chain reaction begins. Consumption does not end at the purchase of an item. It depends on the use and worth of a product. Why is behavior important to consumers: marketer who understands consumers, designs products with more value, policy makers who understand consumers, make effective public policy decisions, consumers who understand behavior, make better decisions on how they allocate their resources. Marketing ethics + consumer behavior: relations between marketer (products/companies) and consumers is not always positive, misbehavior becomes complicated, not a general agreement on what is unethical, ethical. Standards or moral code of conduct to which a person or a group adheres: manipulative marketing practices, false advertising, corporate scandals, and change the value associated with the exchange of good. For example, money for item or service: rules of behavior, consequences, vote for you wallets. Looks at consumers as they go about the consumption process.
